Selling a let property

new2allthis

Hi

I have a flat that I let but it's a total hassle, so I've decided to sell.

What's the best way to advise the tenant? I want to understand what the legal minimum is but, ideally, I'd prefer to follow best practice because the tenant has been vert good and I feel it's only fair to treat him well in return.

I would like to give him the heads-up as a courtesy before an agent wants to access the property to value it and draw up sale particulars etc.

I would also like to offer him first refusal, in case he is interested in buying it himself. If that's the case, even better to know before an agent has been engaged! Can I write to him directly? I would prefer to let him know before I tell the letting agent.

Although the letting agent also sells properties, for various reasons, I am not inclined to appoint them to sell it. I'd rather use the agent I bought my home through. Can the selling agent contact the tenant directly, or do their communications with the tenant always have to go through the letting agent or, at least, initially? Clearly, I will need to be mindful of the tenant's preferences here, but I would like to know the usual/required practice.

All advice welcomed.

Many thanks

AJ

robatwork

I think legislation has made people unnecessarily jumpy about good old-fashioned communication.

Just call him (or text if you are more comfortable), and discuss. You don't have to talk about prices at this stage, just say you are sounding him out as a courtesy, and is he interested in buying.

When I rented, I remember when I put in my notice the LL visited and said "shame as we were thinking about offering it to you".... and you can imagine my thoughts, especially as they had refused to negotiate on a rent rise they put through I thought was excessive.

G_M

Go round (after making an appointment!) and have a chat.

But my advice would be (assuming he does not wish to buy) that you end the tenancy before marketing.

* many buyers are wary, if not totally put off by, properties with tenants in place

* even if you find a buyer, you can never guarantee a date when you'll get vacant possession, so exchanging contracts becomes difficult (hence the point above!)

I assume you know how to end a tenancy, but in case you want a reminder:

* Ending/renewing an AST: what happens when a fixed term ends? How can a LL or tenant end a tenancy? What is a periodic tenancy?

[Deleted User]

If you want to give your tenant first refusal on the sale, a good idea to just ring him up in the first instance and tell him what you're planning. You need to be aware that if you are letting the flat through a letting agency, and if they found the tenant for you, if the tenant wants to buy it, you may have to pay the agency a commission (so check your contract carefully).

From friends who rent properties out, what seems to often happen is that as soon as the tenant knows the property is to be sold they quickly find somewhere-else to live, so you may not have this problem very long. Otherwise, I guess it's all about ensuring that the property is neat and tidy for the photos (will the tenant be cooperative?) and that it's accessible for viewings. Whichever agent you use to sell it will have had loads of experience in selling rented properties with a tenant in situ, so ask them for advice about the best way to go forward.

Personally, unless you are 100% sure that the tenant will keep the place clean and tidy for viewings, and that you are desperate for the rent, I'd think about giving him notice, then a good tidy up (and any redecorating that is needed) before putting it up for sale.

BTW I'm interested in why you find it a total hassle if you're using a letting agent? I've been renting a small house out for over a year now through an agent, and they've just taken over, and I don't even have to think about it (apart from getting a monthly rent statement). Sounds like it's been totally different experience for you?

new2allthis

robatwork wrote: »

just say you are sounding him out as a courtesy, and is he interested in buying.

Thanks, that's exactly how I want to pitch it.

new2allthis

G_M wrote: »

Go round (after making an appointment!) and have a chat.

But my advice would be (assuming he does not wish to buy) that you end the tenancy before marketing.

* many buyers are wary, if not totally put off by, properties with tenants in place

* even if you find a buyer, you can never guarantee a date when you'll get vacant possession, so exchanging contracts becomes difficult (hence the point above!)

I assume you know how to end a tenancy, but in case you want a reminder:

* Ending/renewing an AST: what happens when a fixed term ends? How can a LL or tenant end a tenancy? What is a periodic tenancy?

Thanks, for the advice.

I'm happy to sell with the tenant in situ or, if the buyer wants to live there, to give notice. Given the type of property, it is likely to be a FTB or someone looking to downsize for retirement or after a relationship breakdown, that sort of thing. So, there is unlikely to be a chain and, while I'm keen to secure the quickest possible sale, I want to do right by the tenant (and not just because the law requires it) and, so, will not agree a completion date that doesn't ensure the tenant has the full minimum notice to which he is entitled, ideally a bit more if possible so he's not under too much pressure to find somewhere else.

I remember when I was renting some years ago, and the LL sold the house, so my housemate and I had to leave. I needed an extra week because I was buying somewhere (this flat as it happens), so the letting agent spoke to the LL and that was agreed. As you say the completion date wasn't so straightforward. I'd be happy to allow the same flexibility for my tenant.

Not a clue about ending a tenancy. Never had to do it before, so thanks for the info.

G_M

new2allthis wrote: »

I'm happy to sell with the tenant in situ or, if the buyer wants to live there, to give notice. Given the type of property, it is likely to be a FTB or someone looking to downsize for retirement or after a relationship breakdown, that sort of thing. So, there is unlikely to be a chain and, while I'm keen to secure the quickest possible sale, I want to do right by the tenant (and not just because the law requires it) and, so, will not agree a completion date that doesn't ensure the tenant has the full minimum notice to which he is entitled, ideally a bit more if possible so he's not under too much pressure to find somewhere else.
.

I may be doing you an injustice, but the above indicates a degree of niavity about how a landlord can evict.

will not agree a completion date that doesn't ensure the tenant has the full minimum notice to which he is entitled,

A tenancy does not end and a tenant does not have to leave when the S21 notice expires. It can take many weeks, or months, longer.

Remember, a landlord cannot end a tenancy - only a tenant or a court can do that.

That is precisely why many buyers (other than BTL landlords) are wary of tenanted properties.

gettingtheresometime

Interestingly enough I recent enquirer about a property that was for sale only to be told that the sale was on hold as the tenant had objected to viewings.

new2allthis

Corona wrote: »

If you want to give your tenant first refusal on the sale, a good idea to just ring him up in the first instance and tell him what you're planning. You need to be aware that if you are letting the flat through a letting agency, and if they found the tenant for you, if the tenant wants to buy it, you may have to pay the agency a commission (so check your contract carefully).

From friends who rent properties out, what seems to often happen is that as soon as the tenant knows the property is to be sold they quickly find somewhere-else to live, so you may not have this problem very long. Otherwise, I guess it's all about ensuring that the property is neat and tidy for the photos (will the tenant be cooperative?) and that it's accessible for viewings. Whichever agent you use to sell it will have had loads of experience in selling rented properties with a tenant in situ, so ask them for advice about the best way to go forward.

Personally, unless you are 100% sure that the tenant will keep the place clean and tidy for viewings, and that you are desperate for the rent, I'd think about giving him notice, then a good tidy up (and any redecorating that is needed) before putting it up for sale.

BTW I'm interested in why you find it a total hassle if you're using a letting agent? I've been renting a small house out for over a year now through an agent, and they've just taken over, and I don't even have to think about it (apart from getting a monthly rent statement). Sounds like it's been totally different experience for you?

Thanks, didn't know about a possible commission fee if the tenant buys it.

The tenant has been very good and has passed all the visits the agent has done to check how the flat being kept.

Why am I selling it? So far, it has cost me a small fortune due to costly water leaks that I had to pay for (several thousand pounds, so no central heating for me in my house for another winter) even though one of them should have been paid for by the freeholder not me as the leaseholder because the leak in the mains supply was located before the pipe entered my flat (grrr!!!).

Also, the agent's way of working really doesn't suit me at all. Just renewed an expensive insurance and charged me but I didn't want it. I complained about this last year but the agent has just done it again regardless. My preferred means of contact is by email, but the agent always phones. Either doesn't leave a message or just says I have to ring back with no indication of what the call is about, then never responds when I email to acknowledge the call and ask for more info. I made it very clear that I cannot make or receive personal calls during weekdays, hence requesting email or text only (as I sometimes get a chance to check and reply to those). I can't face finding another agent - I wouldn't touch most of the ones I dealt when I buying my current home, that's for sure. I only kept my flat because it was the quickest and easiest way to move out of it. I never wanted to be LL.

new2allthis

G_M wrote: »

I may be doing you an injustice, but the above indicates a degree of niavity about how a landlord can evict.

No, no injustice.

I haven't a clue how this letting malarkey works. Don't understand it, never wanted to be a LL, finding the whole thing totally stressful, want to get out. But, I want to do it in a way that is as fair as possible to the tenant - a) because he's been a good tenant and b) because that's the right thing to do.

new2allthis

gettingtheresometime wrote: »

Interestingly enough I recent enquirer about a property that was for sale only to be told that the sale was on hold as the tenant had objected to viewings.

I hadn't considered that possibility.

When I rented and the LL was selling up, my housemate and I had to allow visits. It was part of the tenancy agreement we signed. Has that changed?